EUR/USD Constrained by Resistance, Downside Move Likely
- Near the 1.0290 region, EUR/USD is encountering resistance.
- On the 4-hours chart, a significant bullish trend line is developing with support close to 1.0145.
- GBP/USD is having difficulty maintaining above the 1.2000 support level.
- The price of crude oil continued to fall below the $90 level of support.
Technical Analysis of EUR/USD
Above the 1.0150 resistance level, the Euro began a descent upward movement against the US Dollar. Before the bears showed in, EUR/USD even traded above 1.0220.
On the 4-hour chart, the pair encountered significant resistance close to the 1.0295 level. The price is currently correcting lower after a high was established close to the 1.0296 mark.
The support level of 1.0250 was breached. Even the 100 simple moving average (red, 4-hours) and the 200 simple moving average were broken by the pair (green, 4-hours).
It is presently having difficulty maintaining above the 1.0160 support level. Near the 1.0150 level is the first significant support. On the same chart, a significant bullish trend line with support close to 1.0145 is also developing. A downward break below the trend line’s level of support might lead to a rapid drop.
Near 1.0100 is the next significant support. Any more losses might push the pair closer to the 1.0050 area. The pair is encountering resistance near the 1.0250 level on the upswing.
Near the 1.0290 level, there is the next significant barrier, above which the pair may move higher. In the aforementioned scenario, the pair may advance in the near term toward the 1.0350 resistance region.
When looking at the price of crude oil, a significant drop occurred below the $95.00 and $92.0 support levels. Price even dropped below the $90.00 mark, and further declines are still possible.
Economic News to Trade Today
- Forecasted Euro Zone Sentix Investor Confidence for August 2022 is -24.7, down from the previous reading of -26.4.
Author: Amogo Solomon
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